stories of change · to find out more about these stories and others, how transparency...
Post on 26-Jul-2020
0 Views
Preview:
TRANSCRIPT
Better businessby preventing corruption
STORIESOF CHANGE
Transparency International is a global movement with one vision: a world in which government, business, civil society and the daily lives of people are free of corruption. Through more than 100 chapters worldwide and an international secretariat in Berlin, we are leading the fight against corruption to turn this vision into reality.
www.transparency.org
Author: Stephanie Debere
Editor: Jennifer Campbell
Editorial advice: Katja Bechtel
Coordinator: Christine Hosack
© Cover photo: iStock.com / Asia-Pacific Images Studio
Every effort has been made to verify the accuracy of the information contained in this
report. All information was believed to be correct as of November 2018. Nevertheless,
Transparency International cannot accept responsibility for the consequences of its use
for other purposes or in other contexts.
ISBN: 978-3-96076-108-2
Printed on 100% recycled paper.
2018 Transparency International. Except where otherwise noted, this work is licensed
under CC BY-ND 4.0. Quotation permitted. Please contact Transparency International
– copyright@transparency.org – regarding derivatives requests.
CONTENTS
INTRODUCTION 2 Building integrity as a business asset
TRANSPARENCY IN CORPORATE REPORTING 4
Driving disclosure to prevent corruption
INDONESIA 8 Partnerships to prevent corruption
ITALY 11 Business-driven best practice
MEXICO 14
Companies join the push for new anti-corruption laws
RESOURCES 17
2 TRANSPARENCY INTERNATIONAL
INTRODUCTION
BUILDING INTEGRITY AS A BUSINESS ASSET
Companies increasingly recognise that integrity is good for business.1 Yet bribery and
corruption persist. Large-scale corporate scandals show that much remains to be done to
tackle corruption in the business sector. Based on four case studies, this paper shows how
Transparency International is supporting companies worldwide to develop anti-corruption
systems, which can help prevent corruption and boost business, so that more companies
reap the benefits of high integrity and transparency standards.
The business case for corporate integrity is clear. Not only do the costs of corruption outweigh the
benefits in the long term, strong integrity and transparency programmes are also proven to be an
important element for improved business performance. Measures to detect and prevent corruption
help promote fair competition, minimise losses that can be incurred as a result of corruption, and
increase access to capital. They also protect and enhance companies’ reputations, which can
unlock new commercial opportunities and create a competitive edge.2
The active and transparent implementation of high integrity standards also demonstrates a
company’s commitment to broader ethical values and corporate responsibility. Companies have an
important role to play in tackling corruption worldwide and their individual and collective actions can
make crucial contributions to levelling the playing field.
Corruption in business can increasingly be detected and prevented by using tools and approaches
like those profiled in this paper.3 Whether large and international, or small and local, companies are
increasingly interlinked - via the supply chain, consumers, competitors, business associations,
regulators and the general public. All of these links can play a role in tackling corruption, meaning
any company can make a difference.
The diversity of the business sector is reflected in Transparency International’s many approaches to
addressing business integrity. Our Business Integrity Programme supports companies by aiming to
reduce corruption through measures that increase transparency, accountability and integrity in
business practices worldwide. With our national chapters, partners and allies, we harness our
experience, in many different contexts, to develop the best tools and approaches for beating
corruption and bolstering integrity and transparency.
Building blocks for preventing corruption in business
Transparency International’s approaches to fighting corruption in business began with the Business
Principles for Countering Bribery, created in 2003 through a multi-stakeholder process to support
companies to design and implement effective anti-bribery programmes. The principles are the
foundation for a range of guidelines and tools we have since developed to counter corruption in the
business sector. Many are integrated into the Business Integrity Toolkit, a user-friendly, six-step
framework for companies on how to build a comprehensive anti-corruption programme – from
high-level commitment, to planning and monitoring the programme, and regularly reporting on
its progress.
3 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
We regularly adapt our tools and approaches to increase their impact in a dynamic business
environment. The latest addition to our suite of business integrity tools is the 10 Anti-Corruption
Principles for State-Owned Enterprises, which are based on the Business Principles and set out
best practice for state-owned enterprises to counter corruption risks.
The four case studies in this paper reflect the diversity of our Business Integrity Programme, in the
different challenges they address, and the range of contexts and solutions they present. Despite
their differences, all showcase the powerful effect our work has had on business in recent years.
The case studies are:
Transparency in Corporate Reporting: Driving disclosure to prevent corruption
Transparency International’s flagship study on the business sector, the Transparency in Corporate
Reporting (TRAC) report series, assesses and ranks major companies according to their disclosure
practices. Whether based on global, sectoral or individual country studies, TRAC reports give
valuable insight into corporate transparency to help companies improve disclosure practices – as
shown by recent studies in Belgium, Brazil and South Africa.
Indonesia: Partnerships to prevent corruption
Transparency International Indonesia has partnered with PLN, the country’s state-owned electricity
supplier, to help it tackle corruption and become one of Indonesia’s most transparent state-owned
enterprises.
Italy: Business-driven best practice
In Italy, Transparency International is working with big business to cascade the anti-corruption
message down the supply chain through a jointly developed integrity kit for small- and medium-sized
enterprises.
Mexico: Companies join the push for new anti-corruption laws
In coalition with businesses and other civil society organisations (CSOs), our Mexican chapter has
harnessed people power and campaigned successfully for strong new anti-corruption laws that
include regulation of the country’s business sector.
Strengthening business, from global to local
Whether at the international or individual company level, our experience shows that it is possible to
make a real difference to corporate integrity and transparency in a wide range of contexts – and that
this is consistently good for business. We hope these stories inspire you to help build business
integrity, as well as highlighting some of the tools and support available. By working together to
promote corporate anti-corruption practices, we can help create the level playing field needed for
business to achieve its full potential.
To find out more about these stories and others, how Transparency International can help build
business integrity in your context, or how to join the Business Principles for Countering Bribery
Steering Committee, please contact our Business Integrity team at BIP@transparency.org.
4 TRANSPARENCY INTERNATIONAL
Photo by Unsplash / Victor Jacovlev
5 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
TRANSPARENCY IN CORPORATE REPORTING
DRIVING DISCLOSURE TO PREVENT CORRUPTION
Transparency International’s report series Transparency in Corporate Reporting (TRAC)
ranks major companies according to their disclosure practices, enabling public monitoring
of corporate practice and encouraging corporate engagement in finding solutions to complex
corruption challenges.
Companies worldwide are increasingly taking steps to prevent corruption and increase
transparency. However, although by now many companies comply with, or even surpass, some
legal requirements, they could do more to prevent corruption and increase accountability by
disclosing more information. This could include publishing financial information by country – to
enable monitoring of payments to governments in different jurisdictions – and disclosing information
on anti-corruption programmes, corporate structures, and beneficial ownership. These disclosures
help to hold companies to account, reducing companies’ reputational risk and costs from bribes or
fines, and enabling them to compete on a level playing field, where no one has an unfair advantage
through corruption.
To promote such disclosure, TRAC assesses and ranks major companies according to their
disclosure practices in crucial areas. These include anti-corruption programmes, organisational
transparency and financial information on a country-by-country basis – with beneficial ownership
information soon to be added. Disclosure of this information demonstrates a company’s commitment
to countering corruption, enables others to hold companies to account and helps improve
international perceptions of a country’s overall business integrity. Since 2009, Transparency
International has published three global TRAC studies assessing the world’s largest companies, two
assessing emerging market multinationals, and two sectoral assessments of the world’s largest oil
and gas and telecommunications companies. In addition, 25 national TRAC reports have assessed
the largest companies in individual countries, including Belgium, South Africa and Brazil, which are
showcased here.
“Our participation in the Brazilian TRAC study was extremely important... We will be constantly seeking improvements to achieve even better positions next time.”
Thamyle de Cassia Leite, ArcelorMittal Brasil
A proven anti-corruption tool
The TRAC reports compare individual company performances and reveal global, national or sectoral
trends and shortcomings. They raise awareness among the business community of the benefits of
effective anti-corruption measures and promote competition among companies to improve their
disclosure practices. They are also powerful advocacy tools, and increase appreciation of corporate
transparency among the public, government officials, the media and civil society. The TRAC
research process provides companies with the opportunity to engage with Transparency
6 TRANSPARENCY INTERNATIONAL
International on the study, which can result in substantial interaction between Transparency
International and these companies. Active participation in a TRAC study is a sign of responsible
corporate citizenship and public commitment to an anti-corruption stance. It enables companies to
spread knowledge about ethical business standards and promote integrity among employees and
partners. From mid-2017 to mid-2018 alone, 68 companies that actively engaged in a local TRAC
process in Lithuania, Russia and Brazil improved their disclosure practices during the research
phase.
Globally, Transparency International has assessed around 2,500 companies in over 20 countries,
and TRAC research has led Transparency International to engage with well over 500 companies on
their disclosure practices. Recent reports in Belgium, Brazil and South Africa have provided a
platform for ongoing debate and action around preventing corruption in business. Each report
profiles the country’s largest companies, and all show the benefits of TRAC, which extend far
beyond the reports themselves.
These benefits include:
Ongoing corporate improvement
Companies’ regular assessments can be a powerful stimulus for greater transparency. “Our
participation in the Brazilian TRAC study was extremely important so we could compare our position
in relation to the market and analyse what could be improved for next time,” says Thamyle de
Cassia Leite, a lawyer at ArcelorMittal Brasil. “We will be constantly seeking improvements to
achieve even better positions, especially in disclosing financial reports of our subsidiaries abroad,”
she adds.
Advancing corporate anti-corruption policies
The interactions between Transparency International and those companies that accept the invitation
to engage during the TRAC research phase have helped to build relationships that advance
corporate anti-corruption policies. Belgium’s 2016 TRAC study focused on smaller international
companies, and found they performed less well than larger companies in TRAC assessments.
During the research process, some companies were initially defensive, stating that they were
compliant with auditing regulations. However, through meetings and by sending companies their
TRAC results for review before publication, Transparency International Belgium is building
relationships that enable the chapter to help several companies improve their disclosure practices.
Wide-ranging debate
The TRAC process can stimulate debate about the importance of disclosure and transparency. In
2016, South Africa’s first TRAC attracted strong attention, ranging from the business press to
popular TV. This stimulated animated public debate and provided valuable opportunities for
Corruption Watch – Transparency International in South Africa – to explain the benefits of
transparency and disclosure for both companies and society more broadly. Brazil’s 2018 TRAC
prompted government officials to ask for a similar tool to assess state-owned enterprises.
Tailor-made responses
TRAC studies help identify gaps in companies’ integrity and transparency frameworks, informing
focused responses. Transparency International Belgium has developed specific materials to help
smaller international companies improve disclosure. In South Africa, TRAC showed that many
companies complied with regulations, but did not make information accessible in areas such as pre-
tax profits, whistleblowing or facilitation payments. This enabled Corruption Watch to focus on
7 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
helping companies strengthen their anti-corruption measures in these areas. When Brazil’s TRAC
showed weak engagement by top management in anti-corruption programmes, Transparency
International Brazil organised forums to increase CEO involvement. “Our TRAC score was weaker
over public evidence of support for anti-corruption by company leadership,” says João Paulo
Mateus, director of Internal Audit and Compliance at energy company EDP (Energias de Portugal).
“In response, we are taking action to demonstrate that support, including a clear statement from the
board and management in our 2017 Annual Report. The TRAC report was very important for Brazil,
to help businesses, public institutions and society change the state of the country in terms of
corruption and business culture,” he adds.
Although not all companies included in TRAC assessments engaged with Transparency
International during the process, various companies in all three countries have asked Transparency
International to repeat TRAC. Even companies not included in previous studies have requested an
assessment. Building on the impact already achieved, all three countries are planning a new TRAC
process during 2019, incentivising companies to improve their scores and keeping alive the debate
on corporate integrity. Business leaders agree that TRAC has a powerful impact on the anti-
corruption context. “Integrity and transparency were already on the agenda of Brazil’s largest
companies,” says Thamyle de Cassia Leite. “But TRAC has encouraged us to see them as
competitive differentials. It reinforces that being transparent with society is healthy for business,”
she adds.
8 TRANSPARENCY INTERNATIONAL
9 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
INDONESIA
PARTNERSHIPS TO PREVENT CORRUPTION
Transparency International Indonesia’s partnership with the country’s state-owned electricity
provider proves no business is too big to tackle corruption and develop a culture of integrity.
Where corruption is embedded in big businesses, they can resemble super-tankers, too huge to turn
around. Corruption seems simply “the way business is done”. But Transparency International
Indonesia’s partnership with the country’s state-owned electricity provider shows that improving
integrity and transparency is never out of reach.
Indonesia’s state electricity provider, Perusahaan Listrik Negara (PLN), was among the state-owned
enterprises known to have a deeply ingrained culture of corruption.4 With a monopoly over electricity
supply, PLN was often in the news for poor service delivery, price mark-ups or facilitation payments.
In 2011, several PLN executives were convicted for corruption offenses, including a former PLN
president who was sentenced to five years in prison for illegally awarding a contract to an industrial
supply company.5
A bespoke integrity programme
“After the scandals, PLN wanted to reduce corruption risks so it could improve service delivery to the
public in Indonesia, while also attracting much-needed international investment. Tackling corruption
was an urgent business priority’, says Dadang Trisasongko, executive director of Transparency
International Indonesia. “In 2012, the company approached Transparency International Indonesia for
help to transform itself into an integrity-driven organisation,” he adds.6
The first step was to gain top-level commitment by signing an agreement with PLN’s CEO. Working
with a multifunctional task force from across the organisation, Transparency International Indonesia
then identified corruption risks in the electricity sector and evaluated PLN’s existing anti-
corruption measures. This showed the essential changes PLN needed to make to improve its
integrity practices. To address those, the team developed a comprehensive anti-corruption
programme for the organisation, called PLN Berintegritas (“PLN has integrity”), using Sintesis, a
local adaptation of the Business Integrity Toolkit.
“We hope the collaboration model with Transparency International Indonesia will inspire more companies to embed integrity in their day-to-day activities. This way, we can create an ethical business environment.”
Djonny Koesoemahardjono, compliance director, Gunung Sewu
Giving staff the right tools and skills
Based on a tailor-made ICT platform piloted by over 1,000 staff across PLN, Berintegritas provides
employees with tools for assessing, preventing and mitigating corruption risks. The programme also
includes whistleblowing and complaints mechanisms. Transparency International Indonesia runs
10 TRANSPARENCY INTERNATIONAL
anti-corruption training for PLN staff, including on topics such as gift management and asset
disclosure, while PLN’s internal training programme uses an online Berintegritas module.
Although work is ongoing, its impact is evident. Indonesia’s Central Information Commission
assessed PLN as one of the most transparent state-owned enterprises from 2013 to 2016. In 2017
PLN ranked 5th out of 100 state-owned enterprises in the Commission’s assessment. In addition, the
country’s Corruption Eradication Commission commended its asset disclosure system in 2017.
Service delivery is monitored through an online anti-corruption application, making corruption easier
to detect. Since 2017, Berintegritas has also helped PLN publicise its commitment to integrity,
including during procurement for construction of a 35,000-megawatt power plant. With its improved
anti-corruption framework, the company attracted higher rates of external investment for the plant
than previously.
A new model for preventing corruption
PLN’s integrity programme has created a new collaborative model of corruption prevention,
replicable in other state-owned enterprises or private companies, in which Transparency
International Indonesia works with the business as a strategic partner in strengthening its integrity
system. The more companies using the model, the stronger the collective integrity. Similar
processes are currently underway with state-owned gas company Transgasindo and holding
company Gunung Sewu, whose business interests include food, insurance, property and
manufacturing. “We hope the collaboration model with Transparency International Indonesia will
inspire more companies to embed integrity in their day-to-day activities. This way, we can create an
ethical business environment,” says Djonny Koesoemahardjono, compliance director of Gunung
Sewu.
Based on these successes and with future adaptations considering the recently developed 10 Anti-
Corruption Principles for State-Owned Enterprises, Transparency International Indonesia plans to
partner with more big companies in this way. PLN’s experience shows that strengthened integrity
systems are good for business, and that no corporation is too big to start turning.
11 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
© iStock.com / filrom
12 TRANSPARENCY INTERNATIONAL
ITALY
BUSINESS-DRIVEN BEST PRACTICE
Italian multinationals are sharing tools with smaller companies, in partnership with
Transparency International Italy, to tackle corruption along their supply chains. The result is
a cascade effect that is starting to strengthen integrity across Italy’s business sector.
Smaller companies have a vital but often unfulfilled role in preventing corruption – especially in
countries like Italy, where small- and medium-sized enterprises (SMEs) form 95 per cent of the
business sector in terms of numbers. However, these companies can lack both the resources
and the skills to play their part. This undermines their competitive edge – and that of the entire
business sector.
The vital role of small businesses
“In our experience, many SMEs are not fully aware of the benefits of transparency and integrity as
ways of preventing corruption,” says Davide del Monte, executive director of Transparency
International Italy. “Companies that have good anti-corruption programmes and publicly report on
them can increase their competitive advantage and benefit from risk reduction, cost savings and
sustainable growth – and their individual actions can help level the playing field for all,” he adds.
As well as potentially damaging their own business interests, SMEs engaging in corruption present a
risk to bigger companies’ reputations and efficiency by allowing corruption further along the supply
chain. So when Transparency International Italy approached multinational companies to collaborate
in helping the country’s SMEs strengthen their integrity measures, many were happy to take part. By
tackling corruption down their supply chains, they would reduce their own financial and reputational
risk and help reinforce Italy’s business sector.
Harnessing support from big business
To coordinate these efforts, Transparency International Italy founded a Business Integrity Forum in
2016, a working group that attracted 13 major companies in its initial year, including Snam, Enel
and Edison.
Together, forum members, as their first joint project, adapted existing Transparency International
tools to create an SME Integrity Kit, which they give without charge to companies in their supply
chains to raise SME understating of integrity as a business asset and to support improved practice.
The kit contains a chart of general ethical principles, guidelines for implementing a whistleblowing
system, business-to-business Integrity Pacts7 and instructions for implementing the tools through
company websites.
“Alkim is recommending the SME Integrity Kit to other small companies. Spreading values is a priority.”
Giansandro Scorsetti, CEO of Alkim, supplier to multinational Snam
13 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
Creating a cascade effect
Available in French, Spanish, English and Italian, the kit was launched in November 2017 and is
available online for free, worldwide. In just five months, more than 730 SMEs in the forum
companies’ supply chains downloaded it. “At first, we were surprised,” says Giansandro Scorsetti,
CEO of Alkim, chemical supplier to multinational gas infrastructure company Snam. “But Snam’s
reputation and the kit itself convinced us it was worthwhile. We always had ethical values, but no
real framework to safeguard them. The kit contains all the tools needed, and has helped us discuss
topics we did not previously speak about,” he continues.
Much of the toolkit’s success stems from its business-sector origins. SMEs are now voluntarily
passing the kit onto companies along their own supply chains, creating a cascade effect. Vito di
Marco, CEO of Serintel, another Snam supplier, says: “We are inviting business partners to share
this initiative. The feedback has been positive and we have already signed three business-to-
business Integrity Pacts.”
Although it is too early to measure the business impact of these tools, the conversation about
integrity is now opening up across Italian business. The kit is showing the power of companies
themselves, large or small, to encourage each other to tackle corruption.
Download the SME Integrity Kit at: http://businessintegrity.transparency.it/SMEIntegrityKit
14 TRANSPARENCY INTERNATIONAL
Photo by Wikimedia Commons / Correogsk
15 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
MEXICO
COMPANIES JOIN THE PUSH FOR NEW ANTI-CORRUPTION LAWS
When a multi-stakeholder coalition of civil society actors and academics pushing for anti-
corruption reform in Mexico was established, Mexican companies and business
associations, for the first time ever, joined a collective effort to tackle public sector
corruption and address the business sector’s role in preventing corruption. The coalition
succeeded in reforming laws that have changed Mexico’s entire anti-corruption framework,
and include new legal mandates for creating and strengthening compliance programmes.
“By 2014, corruption in Mexico was widely understood as a barrier to economic development and
equality,” says Eduardo Bohorquez, executive director of Transparencia Mexicana (our Mexican
chapter). “Although the business community acknowledged the situation, they rarely made open
statements against corruption or addressed the business sector’s role in the country’s corruption
issues. By 2015, things changed significantly. By being part of the anti-corruption coalition, the
business sector not only raised its voice against corruption but recognised their responsibility and
significantly contributed to building popular support for reform,” he adds.
At the time, companies could only be held administratively – not criminally – responsible for corrupt
acts, and there was poor coordination between authorities in charge of investigating, prosecuting
and sanctioning corruption. Leading CSOs, including Transparencia Mexicana, agreed that both
issues needed to be addressed by greatly strengthening Mexico’s anti-corruption laws and ensuring
their implementation.
Partnering with business to drive reform
To promote their idea, CSOs formed a coalition in 2015, along with businesses and confederations
such as the Mexican employers’ association Coparmex and academic institutions including the
National Autonomous University of Mexico, the Centre for Economic Research and Teaching and
the Monterrey Institute of Technology and Higher Education. The coalition proposed reforms that
would enable comprehensive criminal and administrative laws, thorough internal and external audits,
strong institutions and the appointment of a new Special Prosecutor and specialist judges.
"We became involved in the campaign because it reflects our values,” says José Luis García
Chagoyán, coordinator at Coparmex. “Transparencia Mexicana led the process to design the
proposed legislation and negotiate with Congress to agree an optimal legal framework. They gave
us technical guidance to better understand proposals, and supported us in taking part in political
negotiations. We also promoted the campaign among our members,” he continues.
The first step was to draft amendments to strengthen the laws regulating corruption in public
administration and companies. Measures included greater disclosure obligations for public officials
and stronger mechanisms for investigating misconduct. To maximise popular support, the coalition
decided to present their proposed law in Congress as a citizens’ bill, rather than giving it to a
legislator or presenting it to a congressional committee. The private sector was central to collecting
the signatures needed for the citizens’ bill. Cinema chains put stands in their foyers, and business
16 TRANSPARENCY INTERNATIONAL
associations including the Business Coordination Council promoted the bill among members and ran
media campaigns to gain support.
“Corruption in Mexico was widely understood as a barrier to development. Business participation was crucial in building popular support for reform.”
Eduardo Bohorquez, executive director, Transparencia Mexicana
Raising support for a citizens’ bill
Backed by a petition with 634,000 signatures from across the country, the coalition took the bill to
Congress in 2016.8 After four months of public dialogue with legislators, conducted under open-
parliament rules and broadcast on Mexican TV, the law became the first ever citizens’ initiative
passed by Mexico’s Congress, and globally one of the few, if not the only, comprehensive anti-
corruption legislation co-created by legislators and citizens. Unprecedented levels of public support
subsequently allowed CSOs to push for bolder changes in other existing anti-corruption laws,
including the federal criminal code. Transparencia Mexicana successfully led demands for
corporate criminal liability for corruption, punishable by sanction, including company dissolution
and asset seizure.
Enacted in 2016, the laws reshaped Mexico’s legal anti-corruption framework, creating new
coordination systems for institutions and giving them stronger capacities to prevent and prosecute
corruption. Criminal offences for companies now include trading in influence, bribery of foreign
public officials, and operations using resources from illicit sources. Sanctions which formerly applied
only to employees involved in corrupt offences – even if their actions were approved by the
company – now apply to companies as well. The laws also created a citizens’ committee to help
shape national anti-corruption policy and ensure regular monitoring and evaluation.
New laws, improved business practice
Despite resistance among some companies, the legal changes have altered the public debate on
corporate corruption. Companies are competing to implement anti-corruption measures and seeking
to spread them through their supply chains. José Luis García Chagoyán at Coparmex says: “The
new laws enshrine business-sector responsibility for corporate corruption. They are creating a new
environment for doing business so that it generates clearer benefits for all.”
Transparencia Mexicana has presented the new regulations at numerous private sector events, and
has been approached by companies and organisations – including América Móvil, Grupo Modelo
and the Mexican Chamber of the Construction Industry – for help to improve their anti-corruption
policies so they meet the new regulations. The chapter will produce a report in late 2018 assessing
the existence of these policies and the effect of the new laws on levels of corporate corruption. “In
our 2017 baseline assessment of Mexico’s Index of the top 500 companies, based on Transparency
International’s TRAC methodology, 60 per cent had no anti-corruption programme. After one year,
60 per cent did,” says Eduardo Bohorquez. “Already, the new legal framework shows the power
companies have, when they join forces with civil society, to help create a fairer business
environment for all,” he adds.
To find out more about these stories and others, how Transparency International can help build business integrity in your context, or how to join the Business Principles for Countering Bribery Steering Committee, please contact our Business Integrity team, at BIP@transparency.org or your national Transparency International chapter.
17 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
RESOURCES
All global tools profiled in this paper are described below. To find out more, please follow the
links to our website.
10 Anti-Corruption Principles for State-Owned Enterprises
The 10 Anti-Corruption Principles for State-Owned Enterprises help state-owned enterprises (SOEs)
to implement anti-corruption programmes based on the highest standards of integrity and
transparency. This tool sets out 10 best-practice principles on how SOEs can develop policies and
procedures to counter corruption. In particular, they emphasise the role of corporate governance in
providing accountability to stakeholders through transparency and public reporting. The SOE
principles and accompanying resources can be found here.
Business Integrity Toolkit
Transparency International’s Business Integrity Toolkit is a user-friendly six-step process for building
an effective anti-corruption programme. It can be accessed on our website.
Business Principles for Countering Bribery
The Business Principles for Countering Bribery provide a framework for companies to develop
comprehensive anti-bribery programmes. While many large companies have no-bribes policies, all
too few implement these policies effectively. We encourage companies to consider using the
business principles as a starting point for developing their own anti-bribery programmes or to
benchmark existing ones. The business principles can be downloaded from our website.
Transparency in Corporate Reporting (TRAC)
The TRAC reports assess the extent to which leading companies report on the strategy, policies and
management systems they have in place for combating bribery and corruption. The latest report on
100 major emerging market multinationals can be found here.
18 TRANSPARENCY INTERNATIONAL
ENDNOTES
1 OECD Corporate Governance and Business Integrity: A Stocktaking of Corporate Practices (2015). 2 Matthew Jenkins “The relationship between business integrity and commercial success”, Transparency International U4 Anti-Corruption Helpdesk, 5 April 2018. Available at: https://knowledgehub.transparency.org/helpdesk/the-
relationship-between-business-integrity-and-commercial-success 3 To find out more about the tools profiled in this paper, please refer to the Resources section. 4 Innovation Norway, Norwegian Energy Partners, Handbook – Challenges of Doing Business in Indonesia. Available at: https://www.innovasjonnorge.no/globalassets/sats-internasjonalt/kontorer/indonesia/2017.10.25-final-report---
challenges-of-doing-business-in-indonesia.pdf 5 “Former PLN Head Gets 5 Years for Corruption”, Jakarta Globe (web), 22 December 2011. Available at: https://jakartaglobe.id/archive/former-pln-head-gets-5-years-for-corruption/ 6 “PLN Fights Corruption Alongside Transparency Indonesia”, Tempo (web), 23 April 2014. Available at: https://en.tempo.co/read/news/2014/04/23/055572518/PLN-Fights-Corruption-Alongside-Transparency-Indonesia 7 A tool aimed at encouraging better relationships between business partners by signing a “pact” between business partners to introduce shared values such as correctness and fairness. 8 “2016: El año del activismo ciudadano”, Expansion (web), 15 December 2016.
19 LEVELLING THE PLAYING FIELD: STRENGTHENING BUSINESS BY PREVENTING CORRUPTION
These four case studies were selected based on an initial assessment of various Transparency International projects working to fight corruption in the business sector, as they exemplify the range of projects in which Transparency International is involved. The information contained in this report was gathered between February 2018 and August 2018 via a desktop review of available literature and in-depth interviews with Transparency International Secretariat staff, Transparency International national chapters, and companies. We are grateful to all those who took part in the development of this paper.
20 TRANSPARENCY INTERNATIONAL
Transparency International
International Secretariat
Alt-Moabit 96
10559 Berlin
Germany
Phone: +49 - 30 - 34 38 200
Fax: +49 - 30 - 34 70 39 12
ti@transparency.org
www.transparency.org
Blog: voices.transparency.org
Facebook: /transparencyinternational
Twitter: @anticorruption
top related